Search Results For: 139(5)

Can Penalty Be Levied U/s. 271(1)(c) For Claim Made But Not Accepted By AO?

QUERY: An assessee makes a claim for deduction through a letter during the course of assessment proceedings. The claim is not allowed in assessment and also in appeals. The AO levied penalty under section 271(1)(c) of the Act. Whether penalty is leviable when claim has been specifically made during the course of assessment proceedings even if claim was not allowed at any stage?
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The Orissa High Court in Orissa Rural Housing Development Corporation Ltd. v. ACIT [343 ITR 316] has held

“Law is well settled that when the statute requires a certain thing to be done in a certain way, the thing must be done in that way or not at all. Other methods or modes of performance are impliedly and necessarily forbidden.

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